Where do NFTs go after you purchase them?
To crypto wallets!
A crypto wallet is the first step to set straight before venturing into the crypto space. As banks do not exist in the crypto and NFT environment, users employ crypto wallets as their digital safe for saving, storing, and receiving crypto and NFTs.
How do crypto wallets work, and how can you get one for yourself?
Let’s find out today!
What is an NFT ?
An NFT is a non-fungible token representing digital or physical assets, like images, real estate, food, and video games. The extent to which they can be used as digital manifestations of value is being explored as awareness is raised on NFT technology.
NFT marketplaces and platforms make it easy to find NFTs and purchase them, but what happens to NFTs once you do?
Many mainstream crypto exchanges allow you to store your crypto directly in your account. Some of these include Binance, Coinbase, and Gemini. However, to store your NFTs, you’re going to need a crypto wallet.
Can you store NFTs in a crypto wallet?
While the name might point out similarities, a crypto wallet doesn’t work the same way as a real-life wallet.
A crypto wallet stores keys that allow for access to the NFTs. It doesn’t store your NFT itself, only the user’s access. If the wallet is lost or compromised, chances are most of the NFTs will also be lost.
To learn to store NFTs, you must first select a crypto wallet. There are two main types of crypto wallets: hot crypto wallets and cold crypto wallets.
What is a hot wallet?
The hot crypto wallet is always connected to the internet and its crypto network. You can use it to send and receive cryptocurrency and browse how many tokens you still have available.
Hot wallets are also known as software wallets. They are easy to use but lack security due to their constant internet connection when compared to cold wallets. Most crypto exchanges offer a hot wallet, allowing you to keep crypto in the exchange.
A hot wallet, like Coinbase Wallet, is one of the best wallets for beginners. It’s a simple wallet that supports many types of cryptocurrencies, and it’s also noncustodial.
You can use it to cash out your crypto holdings, and many of them are free.
Hot crypto wallets are the better option if you’re planning to invest in crypto and NFTs for the short term or if you want to cash out your holdings fast.
What is a cold wallet?
Cold wallets are also known as hardware wallets, setting them up as an antithesis to hot wallets. Instead of being completely digital software, cold wallets are physical items. They resemble USB drives that keep your crypto and NFTs completely offline.
Keeping your holdings offline allows you a higher degree of protection from hacking and online attacks, but if you lose the cold wallet, you’ll lose your keys, crypto, and NFTs.
On top of that, as they are physical items, cold crypto wallets can sot between $50 to $200. There are cheaper and also more expensive options, but all of them will cost you.
On top of that, while cold wallets are infinitely more secure than hot wallets, they can be hacked if you purchase the cold wallet from a secondhand provider or from someone else. This is not the type of device to fish for sales on Amazon!
Cold crypto wallets are better if you want to buy and hold NFTs for a long time, most likely more than two years.
Metamask
Metamask might seem unassuming with its orange fox head greeting you every time you’re logging in, yet it’s one of the most versatile crypto wallets ever made for storing NFTs.
Metamask is both a browser extension and an Ethereum wallet, which allows users to interact with decentralized apps (dApps) in the blockchain. It’s designed as a plugin for Chrome browsers and can also be installed on Firefox or Opera using extensions.
Metamask stores Ether cryptocurrency and other ERC-20-based cryptocurrencies. You can create a Metamask account in less than fifteen minutes and log in through their web browser once you download and install the app.
The crypto wallet also has compatibility with MyEtherWallet for users to bypass entering private keys every time they want to store NFTs.
My Ether Wallet is a free, open-source, client-side interface that generates Ethereum wallets for sending, storing, and receiving Ether tokens and digital assets issued on Ethereum.
Metamask requires no private keys, just your phone number, and email address. It’s free to use, open source, and supports many dApps. It doesn’t charge any exchange fees.
On the downside, Metamask’s Ethereum compatibility makes gas prices much higher than similar services. It can take some time to sync the Blockchain, sometimes much more than similar services.
Just as OpenSea is the most popular NFT marketplace, Metamask is the most popular crypto wallet. However, Metamask is by no means the only crypto wallet out there.
Let’s take a look at other alternatives:
Ledger Nano X Crypto Wallet
Ledger Nano X Crypto Wallet allows you to trade and stake crypto on a hardware Ledger wallet. This is a cold wallet that you can purchase for $162.72. It supports over 5,500+ coins and tokens.
Exodus crypto wallet
Exodus crypto wallet has built-in-no-commission trading provided by the exchange platform Shapeshift. It’s a hot storage wallet that only has miner fees and can be customized for Bitcoin and Ethereum transactions.
Mycelium crypto wallet
Mycelium is a good crypto wallet for mobile devices, thanks to its great focus on security and transaction history information.
This well-established crypto wallet focuses on offline transactions, in-app crypto exchange, and educational content. It’s also compatible with other cold storage solutions like Ledger.
Final words about storing your NFTs
One might think NFTs stay in the marketplace’s Blockchain or even that they are sent to a bank account after you finish your transaction.
Storing your NFTs is an easy ordeal, thanks to crypto wallets. Choosing the best one to suit your needs can be more complicated.
Remember that hot wallets like Coinbase Wallets are free and better for beginners or those who want to cash out their NFTs fast.
On the other hand, cold wallets like the Ledger Nano X Crypto Wallet are much more expensive, but they are safer and better suited for long-term NFT holders and traders.
Check out our other articles on crypto wallets to learn more about their differences and uses here.
